Genting Singapore PLC said its subsidiary – Resorts World at Sentosa Pte. Ltd (RWS) – had secured syndicated senior secured credit facilities of S$2.27 billion ($1.66 billion).
The new loan will be used for refinancing Resorts World at Sentosa’s existing facilities of S$4.1925 billion obtained in 2011.
The five-year loan consists of a S$1,750 million syndicated term loan facility, another S$500 million syndicated revolving credit facility, and S$20 million bank guarantee facility, provided by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, the company said in a communication to the Singapore Exchange.
The new facilities enable RWS to extend the tenure of its existing facilities to 2020 and also offer RWS better terms of repayment which enhances the its balance sheet strength and financial flexibility, the statement added.
DEALSTREETASIA reported earlier this month that Genting Singapore was looking to raise S$2.27 billion ($1.66 billion) of bank loans.
As of 31 December 2014, Genting Singapore had $1.7 billion of borrowings and debt securities. Of this amount, $518.7 million is repayable within 2015. Genting Singapore repaid $525 million of its bank borrowings in 2014, with Resorts World Sentosa as its main asset, contributing $637.3 million of $637.9 million revenue in the Q4 2014.
While the mass and premium mass segments of its gaming business saw growth in Q4 2014, the premium segment saw a decline in win percentages and rolling volumes, to below average levels.
This fundraising round by Genting Singapore is aligned with expansion strategy, as it seeks to diversify its portfolio of assets away from the Sentosa integrated resort, with a planned 550-room hotel in the Jurong Lake district scheduled for opening in May 2015 and additional integrated resort in Jeju, South Korea.
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